I will run chkdsk and report back shortly, don't think its a drive failure since everything worked perfect until the first reboot after the compress was completed.

It feels to me like whatever the boot loader should be booting into in order to access the double space volume isn't booting. I do have LoJack installed, wondering if that could have prevented a proper repointing of the boot manager.

Is it possible that I chose settings that compressed my volume and yet somehow deleted the original partition?I did not create a restore volume, so this is a bit stressful.T

So in other words I can see the full partition but can't boot in. When I let the computer try to boot it, it reenters the same boot loop and I have to run chkdsk again from recovery partition to access.T

For some reason, something is corrupting your boot partition every time you boot. Do you have any custom software, possibly even malware, active during boot time which is incompatible with WIMBoot? Perhaps even OEM IBM software?

At any rate, your data seems safe - make sure to backup your ZIPmagic.WIM file to an external disk as soon as possible. If you used an Undo Disk, this backup is already available for you on your Undo Disk. Make sure you also copy files in your folders excluded from compression, if any (typically Microsoft Outlook files on a clean install of ZIPmagic) to ensure they're backed up as well.

Next, on the off chance that you are infected with a virus, or other unwanted malware, I'd do a full system restore to a clean condition. Install ZIPmagic after that, start DoubleSpace 2, plug-in your Undo Disk (or your manual backup disk with ZIPmagic.wim stored at the root), and then choose Clone | Restore | Restore Compressed to try again to enjoy a doubled disk, or just Clone | Restore | Restore Uncompressed to give up on the compression adventure for now. Remember to restore any files you manually backed up in excluded folders.

Please let us know what you find - whether some OEM software breaks things, whether it was malware/a virus/etc.